Dear Ms. Lank: Given the recent, less-than-desirable credit situation, are there any assumable mortgages — with or without bank approval — still available in the marketplace? — J.F.

Answer: All FHA and VA loans are assumable. They can be taken over by a buyer along with the property. Except with loans more than 20 years old, however, the new owner must prove financial qualification to carry the payments. In some circumstances, the original borrower may retain liability for the debt.

Lie Or No Lie

Dear Edith: Eleven years ago I filed for bankruptcy and my condo was foreclosed upon. Since that time I have rehabilitated my credit (scores well over 700 at this time) and remain as close to debt-free as possible. I bought a new car last year and the credit application asked if I had ever filed bankruptcy. I truthfully answered that I had, but more than 10 years previously. My question is, am I legally (or morally or ethically) obligated to disclose a past bankruptcy or foreclosure that occurred so long ago they no longer appear on my credit report or public records? — D.L.D., via e-mail

Answer: I'm certainly not going to stand up here in public and tell you it's okay to lie. But your question is an intriguing one, so let's see what other readers may have to say.

Short Sale Frustration

Dear Edith: I am currently in the midst of a short sale. We had a great offer that would have paid the lender approximately 85 cents on the dollar. Unfortunately, the lender did not respond for the first 60 days and then the buyer pulled out, as did our back-up buyer. We then were able to secure a new buyer for a lower price, about 75 percent of the mortgage debt.

The bank's negotiator is never reachable — she takes messages only. Perhaps we should stop making the monthly payments as the only short sales they are completing are those for loans in default. Our credit scores are 800 so I hate to throw those on the chopping block but we are at a loss as what to do. We leave messages as does our agent. — Via e-mail

Answer: I'm afraid I don't have any good solution for you. I'm printing these letters (try to hold them down to one per week) in hopes that someone at the lending institutions will wake up and realize it's worth setting up more efficient procedures. They'd be better off dealing promptly with workout situations, you'd be better off, buyers would be better off, and so would the real estate market and the country in general.

Another Breakup

Ms. Lank: I own a home with someone. We are both on the deed and mortgage. I put down ALL the down payment to purchase this house. Now we had a falling out and I want out. Since I have all receipts showing I paid all monies down, when we sell or he buys me out, I want my full deposit back. We have nothing in writing about this. Is he entitled to split the monies we wind up with after selling or am I entitled to my full deposit back, then we split whatever is left over after the mortgage is satisfied? — K.

Answer: My guess is that as half-owner, your ex is entitled to half the proceeds, but look — I'm not a lawyer. Consult an attorney, and do let me know if he or she thinks you have a good chance of getting more than half.

If you'd asked me before you started, of course, I'd have advised that you have "something in writing about this" before you made that deposit in the first place.

Edith Lank will respond personally to any questions sent to her at 240 Hemingway Drive, Rochester, NY 14620 (please include a stamped return envelope), or readers may e-mail her at ehlank@aol.com.

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